In Ethiopia, khat cultivation is expanding aggressively in recent years. Regions that were formerly known for coffee production have become major khat producing areas. In Equal proportion, the habit of khat chewing is expanding at an alarming rate among different social groups irrespective of gender, age, religion and ethnic background. Khat has also become one of the leading export commodity and foreign currency earners for the country. Correspondingly, the khat marketing system has evolved tremendously all along the value chain and become a means of livelihoods for many people. Accordingly, school-age children, as young as 8 years, are involved in khat trading and marketing activities. Based on empirical data collected from two khat marketing centers, Aweday and Wondo Genet, this monograph explores the impact of children’s involvement in khat trading activities on their schooling. The study also investigates the major causes for such an engagement of young people in khat marketing activities; and probes the nature and magnitude of other possible adverse effects, such as developing the habit of regular khat chewing.